B. Progress and Accomplishments
A total of $1.3 million was collected from Institutions in default during
1984, and $11.5 million during 1983.
C. Costs, Benefits and Effectiveness
Types of Benefits: The program requires two appropriations. The Annual
Definite Appropriation covers insufficiencies from Treasury borrowings.
The Treasury rate is determined by the average yield for 30 year Treasury
certificates for the month preceding the fiscal year which for FY 1985
1s 12.5 percent. Institutions are now paying only 3 percent Interest
but if any new loans were approved, they would be 4 percent loans. The
permanent Indefinite appropriation is for participation certificates
that were sold to the public at interest rates between 4.75 percent and
6.45 percent and average about 6 percent. Again, the colleges pay only
3 percent Interest on their loans.
Program Scope; As of FY 85, loans totaling more than $640 million have
gone to more than 660 Institutions. Since 1975, four new loans,
initiated by the Congress, have been made under this program. In 1978,
Congress authorized two loans totaling $7.2 million to assist Georgetown
University and Tufts University in the construction of two model inter-
cultural centers. In 1981, Congress authorized two additional loans
totaling $25 million to assist Boston College in the construction of a
new library, and to provide supplemental funds to Georgetown University
for the model Intercultural Center project begun 1n 1978.
Through FY 1985, Congress has appropriated $679.37 million to support
loans to institutions from the Treasury with an additional permanent
Indefinite appropriation of nearly $57 million provided for insufficien-
cies from participation certificates sold to the public 1n 1967 and
1968. Of the million 1n the Initial participation certificates, $108
million remain. These certificates will come due in FY 1987 and FY
1988. Now on deposit at GNMA toward the remaining balance is $34J
million. Interest earnings on the GNMA account have been used to pay
the permanent indefinite Insufficiency for FY 84 and FY 85.
Program Effectiveness: No studies have been conducted of the overall
reconstruction andFenovation needs 1n higher education facilities.
D. Plans for Program Improvement and Recommendations for Legislation
No new construction loans are planned. Prior to 1982, the unobligated
balance of the loan account was to cover deficits 1n the program's annual
operating expenses. In 1982, however, the unobligated balance of the
fund was depleted due to new loan activity. Appropriations are now
required annually to fund operating deficits.
E. Supporting Studies and Analysis Cited in Sections C and F
1. Program Files, Office of Postsecondary Education, U.S. Department of
Education, 1984. below.am is being terminated. No new awards have been